MD.

MAHBUB SARKER
ACA, ACMA (CIMA-UK), CGMA
 Chapter BF's Chapters Content Category for Exam In %
1 Introduction to business Business Objectives & Functions
2 Managing a business Business Objectives & Functions 15%
5 Introduction to risk management Business Objectives & Functions
3 Organizational structure and business forms Business and Organizational Structures
15%
4 Introduction to business strategy Business and Organizational Structures

SYLLABUS 6 Introduction to financial information

7 The business’s finance function
The Role of Finance
The Role of Finance

MAPPING
25%
8 Measuring performance The Role of Finance
9 Working capital and treasury management The Role of Finance
10 The professional accountant The Role of Accounting Profession
15%
11 Structure and regulation of the accountancy profession The Role of Accounting Profession
12 Governance and ethics Governance, Sustainability, CSR & Ethics
15%
13 Corporate governance Governance, Sustainability, CSR & Ethics
14 The economic environment of business and finance External Environments
15%
15 External regulation of business External Environments

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CHAPTER 1
Introduction to business
 1. What is an organization?
2. What is a business?
ENTIRE 3. Stakeholders in the business
PLAYGROUND 4. What are the business's objectives?
5. Mission, goals, plans, and standards

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 • A formal structure of people and resources
working together to achieve common goals.
• Organizations exist because the collective
efforts of people are more productive as a result
of them.
Define • There are many different types of
organizations both the not-for-profit and business
Organization sectors
• All organizations share the feature that they
are designed to get things done.
• Organizations differ in terms of ownership,
control, activity, profit orientation, size, legal
status, and technology.

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 Organizations exist because they:
• Overcome people's individual limitations, whether
physical or intellectual
• Enable people to specialize in what they do best
Why do we • Save time, because people can work together or do
two aspects of a different task at the same time
need • Accumulate and share knowledge (eg about how best
to build cars)
Organization? • Enable people to pool their expertise
• Enable synergy: the combined output of two or more
individuals working together exceeds their individual output
('None of us is as smart as all of us').
In brief, organisations enable people to be more productive.

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 Ownership Control Activity

How do Profit Legal

Size
organisations Orientation status
differ?
Sources of
Technology
finance

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 • A business is an organization that aims to maximize
its owners' wealth but can be regarded as separate from
its owners.
• For a profit-making organization, the primary
Define objective is to maximize the wealth of its owners; for a
Business non-profit organization, it is to provide goods and services
for its beneficiaries.
• Organisations have secondary objectives that
support their primary objectives.

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Distinction
between Profit
and Non-profit
Organisation

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 • A stakeholder is a person who has an interest of some
kind in the business.
• A company's primary stakeholders are its
shareholders.
Stakeholders in • Sustainability is the ability to meet the needs of the
Business present without compromising the ability of future
generations to meet their own needs.
• How far a business can operate sustainably using its
tangible and intangible resources is a key issue, as is
corporate responsibility.

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 Sustainability: the ability to 'meet the needs of the present
without compromising the ability of future generations to
meet their own needs.
Sustainability Business sustainability: how far a business can operate in
a sustainable way, and how it should interact with
individuals and governments in doing so.
Corporate responsibility: the actions, activities, and
obligations of business in achieving sustainability

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 Primary Profit/Wealth Maximizing
Profit Objectives
subject to risk, law &
CSR

What are the Market position

Social
business's
Product Development Secondary
Tech advancement Objectives benefits
objectives? Improve skills

Sustainability
Combined When you make perfect
Objectives synergy

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 Profit/Wealth Market When you
Maximizing position; make perfect
subject to risk, Product synergy
law & CSR Development;

Primary Objectives

Secondary Objectives

Combined Objectives
What are the Technical
business's advancement;

objectives?
Improve skills

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 •Profitability is a key consideration for businesses, but
other constraints may take precedence in certain areas.

Profitability & •Ethical considerations, staff relations, environmental

Constraints protection, and customer satisfaction are examples of
such constraints.

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 Plans &
Objectives
Standards

Planning & Actual Comparisons

Control System Performance with Plans

Corrective
Decision
Needed?

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 Purpose

• Why does the organisation exist?

Strategy
Mission & Its • the operational logic for the organisation
Elements (What & How)

Policies & Standards of

Basic Business function how Behavior
it satisfies its stakeholders
• Influencing power & impacts

Values

• Exhibit the principles

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 • Mission refers to the core purpose or fundamental reason
for the existence of an organization
Mission • Vision means desired future state or long-term
VS aspirations of the organization

Vision • Purpose and Time Frame:

A. Mission: Focuses on the present and describes the
organization's fundamental purpose, activities, and value
to stakeholders.
B. Vision: Looks to the future and outlines the organization's
long-term aspirations, desired impact, and direction for
growth.

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 1. Walmart:
•Mission: "To save people money so they can live
better."
•Vision: "To be the best retailer in the hearts and
Missions minds of consumers and employees.“

Vs 2. Microsoft:
•Mission: "Empower every person and every
Visions organization on the planet to achieve more."
•Vision: "To create a sustainable and inclusive future
for everyone through technology innovation."

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  Goals give flesh to the mission. There are two types of
goals:
•Non-operational, qualitative goals (aims), for
example, a university's aim may be: 'to seek truth'.
(You would not see: 'increase truth by 5%’)

•Operational, quantitative goals (objectives), for

Goals: Aims & example, 'to increase sales volume by 10%’.

Objectives  Objectives should be SMART

• Specific
• Measurable
• Achievable
• Relevant
• Time-bound

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 • Implement the mission, by setting out what
needs to be achieved.
• Publicize the direction of the organization to
managers and staff, so that they know where their efforts
Purposes of should be directed.
• Appraise the validity of decisions by
Operational assessing whether these are sufficient to achieve the
stated objectives.
Goals • Assess and control actual performance, as
objectives can be used as targets for achievement.

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Summary
THANK YOU!

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